Stellantis: Merger of Fiat-Chrysler and Peugeot groups – UPDATE
The merger between Fiat Chrysler Group and Peugeot Group is to be named Stellantis.
UPDATE, 19 January 2021: It's done! Six months after Stellantis was announced as the name of the merger between Fiat Chrysler Group (FCA) and the Peugeot Group (PSA), the new entity has launched.
The merger makes Stellantis one of the largest car companies in the world, with combined annual sales of around 8.1 million vehicles.
In December 2020, it was discovered PSA was technically buying out FCA according to the fine print, despite the language from the two companies referring to the move as a merger.
In early January 2021, a number of media reports suggested the Chrysler brand could be on the chopping block as a result of the union.
The new company should save approximately €5 billion (AU$7.85b) in costs, as the two giants consolidate costs with shared research and development, vehicle platforms, and powertrains.
Stellantis will be dual-listed on the Euronext stock exchange in France and the Mercato Telematico Azionario in Italy.
MORE: Our Stellantis coverage
16 July 2020: Stellantis will be the new name of the fourth biggest car company in the world, after conglomerates FCA and PSA merge to form one giant car manufacturing group.
Fiat-Chrysler Automobiles (FCA) is the umbrella group name for Fiat, Chrysler, Jeep, Ram, Dodge, Alfa Romeo, Lancia, and Maserati. Peugeot Group (PSA) is the owner of Peugeot, Citroen, DS, Opel, and Vauxhall.
The US$50 billion (AU$71.5B) merger of the two groups will create the fourth largest car company in the world.
The new name Stellantis will only be used at a management level, referring to the umbrella corporation of the many car brands brought together in the FCA/PSA merger.
In a joint media release, it's said the new corporate name was developed from the Latin verb 'stello' which means 'to brighten with stars'.
As reported by CarAdvice in June 2020, the merger deal could be under threat by the European Union's executive arm, known as the European Commission (EC).
The EC is investigating whether the merger would reduce the market competition for the popular small commercial vans segment, and could block the deal if it is found to be in breach of antitrust regulations.
A decision will be handed down by the EC in October 2020.
In July 2020, FCA was granted a controversial €6.3 billion (AU$10.3B) loan backed by the Italian government. It's estimated the organisation has secured €17.55 billion (AU$28.6B) in credit from various sources.
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